Gadsden officials hope for good news from audit

Published: Tuesday, November 27, 2012 at 6:16 p.m.

Last Modified: Tuesday, November 27, 2012 at 6:18 p.m.

Gadsden officials hope an audit of post-employment benefits for city employees will show the city’s financial condition has improved after reducing retiree benefits.

The city’s current post-employment liability, excluding pensions, is $110 million, according to Finance Director Lisa Rosser. She asked the City Council at Tuesday’s meeting to approve a contract with Milliman Inc., an actuarial firm, to conduct a Government Accounting Standards Board 45 audit for $11,000.

Rosser during the council’s work session said the city is required to have that type audit every two years, but she obtained approval for it to be delayed until after the council acted on changing retiree benefits.

The changes included not offering city insurance to retired employees after they are eligible for Medicare and reducing what the city will pay for retiree health insurance.

Rosser said she hopes as a result of the audit that the city’s post-employment liability will “go down drastically.” She said that will help with rates if the city goes into the bond market.

“Plus, it makes your financial statements look better,” Rosser said.

In other action, the council approved the purchase of about 25 acres in the Airport Industrial Park, across the street from the former Rigid Building Systems location, from the Gadsden Airport Authority for $275,000.

Frankie Davis, director of economic development and government affairs, during the work session said a couple of firms have expressed interest in the property as an industrial site, and the city has planned for some time to purchase it.

The airport authority will use the $275,000 for operations, since it is receiving no money this year from the city’s general fund.

It also approved a grant agreement with the Alabama Department of Transportation, with partial funding from the Federal Transit Administration, to purchase a van to transport senior citizens and therapeutic patients. The cost of the van is $48,716.50, and the city will pay 20 percent, or $9,743.30.

The council approved selling property on Stroud Avenue on which the city has a nuisance lien and grass cutting lien totaling $4,520.75 to John H. James Jr. for $300. The city won’t have to maintain the property following the sale.

<p>Gadsden officials hope an audit of post-employment benefits for city employees will show the city's financial condition has improved after reducing retiree benefits.</p><p>The city's current post-employment liability, excluding pensions, is $110 million, according to Finance Director Lisa Rosser. She asked the City Council at Tuesday's meeting to approve a contract with Milliman Inc., an actuarial firm, to conduct a Government Accounting Standards Board 45 audit for $11,000. </p><p>Rosser during the council's work session said the city is required to have that type audit every two years, but she obtained approval for it to be delayed until after the council acted on changing retiree benefits.</p><p>The changes included not offering city insurance to retired employees after they are eligible for Medicare and reducing what the city will pay for retiree health insurance.</p><p>Rosser said she hopes as a result of the audit that the city's post-employment liability will “go down drastically.” She said that will help with rates if the city goes into the bond market.</p><p>“Plus, it makes your financial statements look better,” Rosser said. </p><p>In other action, the council approved the purchase of about 25 acres in the Airport Industrial Park, across the street from the former Rigid Building Systems location, from the Gadsden Airport Authority for $275,000.</p><p>Frankie Davis, director of economic development and government affairs, during the work session said a couple of firms have expressed interest in the property as an industrial site, and the city has planned for some time to purchase it.</p><p>The airport authority will use the $275,000 for operations, since it is receiving no money this year from the city's general fund.</p><p>It also approved a grant agreement with the Alabama Department of Transportation, with partial funding from the Federal Transit Administration, to purchase a van to transport senior citizens and therapeutic patients. The cost of the van is $48,716.50, and the city will pay 20 percent, or $9,743.30.</p><p>The council approved selling property on Stroud Avenue on which the city has a nuisance lien and grass cutting lien totaling $4,520.75 to John H. James Jr. for $300. The city won't have to maintain the property following the sale.</p>